RBI Draft Rules on Claim Settlement: 15-Day Deadline & ₹15 Lakh Limit Among 6 Changes

RBI Draft Rules on Claim Settlement: In an attempt to streamline procedures for faster and hassle-free settlement of claims relating to deposit accounts, safe deposit lockers and articles in safe custody in cases where a bank customer dies, the Reserve Bank of India (RBI) released a draft circular on August 11. The Central bank has invited public comments on its draft circular titled ‘Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025’.

In its Draft Circular – Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, the RBI has sought public feedback by August 27. The draft mandates banks to use standardised forms and make them available at branches and on their websites, along with a list of required documents and step-by-step claim procedures.

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For accounts or lockers with registered nominees, claimants would only need to submit a claim form, the death certificate, and identity/address proof. Where no nomination exists, banks must follow a simplified process for claims up to a threshold limit—set at a minimum of ₹15 lakh—requiring additional documents such as an indemnity bond and no-objection letters from other legal heirs. Claims exceeding this limit would require legal heir certificates or succession certificates.

To ensure speedy resolution, the RBI has proposed strict timelines. Banks will have to settle claims within 15 calendar days of receiving all necessary documents. For lockers or articles held in safe custody, they must issue a communication within 15 days to fix a date for inventory.

Delays caused by the bank will attract penalties. For deposit-related claims, banks must pay interest at a rate not less than the prevailing Bank Rate plus 4% per annum for the delay period. For lockers and safe custody articles, the penalty will be Rs 5,000 per day of delay.

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For missing persons, claims may be settled on the basis of a court’s presumption of death. Banks may set a small threshold for settlement with only an FIR, non-traceable report and indemnity letter.

The RBI’s move aims to standardise claim procedures across banks, cut red tape, and ensure timely access to funds and assets for bereaved families. If implemented, the directions could significantly reduce the stress faced by nominees and legal heirs during an already difficult time.

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